tv [untitled] October 13, 2012 10:30pm-11:00pm EDT
let's call them owned employees instead right now this is typically what you find in the tories it's a horrible deal for the workers the workers should be lobbying for more rights not less rights the workers should be lobbying for higher interest rates so the pensions are worth more then workers should be lobbying for representation on the board of directors like they have in germany for exxon example of an economy that's doing well by the way so court is calling them owner employees which of course made me think of one of the biggest private employers in the western world and that is wal-mart they call their workers associates so wal-mart's first ever retail worker strike spreads to twelve cities so this is the model that george osborne wants to bring here this is the first time in fifty years that there has been a strike at wal-mart it is the biggest private employer in america with over one point four million employees and this group is not a union because of course wal-mart is not unionized it's called our wal-mart and
they presented a declaration of respect to the company in june and what they want to thirteen dollars per hour minimum wage at the company they want full time jobs for those that want one and predictable schedules right and wal-mart of course is being squeezed because the global economy is shrinking and even their margins are being squeezed it is known in america as the company's store you know harking back to slave days when you had the plantation in the plantation owner would have a little store for the slaves to buy stuff using the money that the divided plantation owners of one big ecosystem of slavery in a wal-mart fulfills that function in america now because margins are being squeezed in america little known fact is that wal-mart now want to get into the banking business and of course the first headline to hit after they announced it was wait a minute this is illegal you just can't do this wal-mart in the banking business but of course that won't stop them well they because they own the government. so the important point of this is of course that during the recession sixty percent of the jobs lost in america were middle income jobs sixty percent of the job gains
since the end of the recession have been low income jobs so this is a shift from the middle class down to those basically low paying wage jobs out wal-mart and the average wage at wal-mart is eight dollars an eighty one cents an hour according to this world right wages in america are going down so they report to the bureau of labor statistics number every once in awhile what the actual employment number is and they argue whether it's above eight percent or below eight percent but the fact is doesn't really matter where it is because wages are collapsing that's the key number wages are collapsing. and one of the demands of these wal-mart people is basically they don't want to live on government handouts because most wal-mart employees now have to live on government handouts which means you're living off j.p. morgan handouts because j.p. morgan is in charge of dispensing with the food stamps that many wal-mart employees have to live on that's right a lot of people don't know that j.p.
morgan you know talking about slaves and plantation days they live in the big house that's jamie diamond in the big house he gives out the food stamps going down a wal-mart he process is different stamps are his shareholders that are continually getting diluted to pay for the bonuses they're going to. so we've just covered the fact that here in the u.k. they're saying workers of the world's night by giving up your rights in europe we see europeans unite more and give up your sovereignty here is the headline max i.m.f. sees european banks facing four point five trillion dollar selloff yes the i.m.f. said european banks may need to sell as much as four point five trillion in assets through twenty thirteen if policymakers fall short of pledges to stem the fiscal crisis up eighteen percent from its april estimate so they're saying that european governments have to basically set up a single supervising system in the timing agreed are you right now. oh additionally
when they say they need to sell off these trillions dollars worth of assets there on the books for supposedly trillions of dollars but when they go into the marketplace to sell these assets off they'll find that they're not worth anywhere near what the banks say they're worth what your perception the next global banking crisis what you will engender two things a more money printing and two more bank consolidation as the too big to fail banks get even bigger to be bigger to fail or to be bigger bigger fail fail. well this is again the issue is that when we saw the first collapse the first beginning of the collapse in two thousand and eight who was one of the big winners of it all was j.p. morgan they picked up bear stearns at pennies on the dollar all their assets barclays bank picked up all the lehman brothers assets cheap on the very cheap northern rock collapsed the taxpayer here was given all the bad assets remember it
the good assets were transferred to jersey or some offshore tax a friend and that was given to the lord knows who but probably j.p. morgan or goldman sachs right and in the u.s. one of the banks mentioned as the next to go under is morgan stanley so morgan stanley may have a lot of retail brokers they'll go bankrupt because their balance sheet is worth negative billions and they'll end up working for j.p. morgan along with a screen berk memories to be embarrassed turns famous broker from the 1980's a little known fact well so they're implementing fiscal tightening as well this is another issue that i'm f. says the europeans have to do more fiscal tightening again that's austerity we see the results in greece we see the results in spain and this is the austerity is imposed that's basically the bad bank the bad assets in spain certainly all the bad mortgage debt were transferred to the taxpayer in ireland all the bad mortgages debts of these small group of the the golden circle were transferred to the taxpayer in ireland and they've been chalak well look these european economies are
fiscally incontinent and they are all touching the cloth or they need to show some cloth touching collateralized bonds to bail them out to some parallel civilization in a. faraway galaxies. don't you worry americans out there because the i.m.f. report also stressed that the u.s. and japan also face risks to financial stability well japan is really they ultimately wildcard because they are second biggest economy in the world they've got debt to g.d.p. over two hundred percent is the most dead. country in the world the demographics are atrocious and when the sucker goes down. farther see our currency is right there with a quote from the i.m.f. reads the present difficulties in the euro area provide a cautionary tale for japan given the latter's high public debt load and interdependence between banks and the sovereign that is expected to deepen over the medium term again here we see the walmart model implemented across the world
because you see in interdependence between banks and the solver if you work at wal-mart there's an interdependent between the worker and the state morgan because you can't work at wal-mart without relying on food stamps right the free enterprise system has left the building and home you know basically slave model going on and you have a corporatist model and you have a fascist model free market capitalism however no you don't have a model well speaking of that you know one of the i.m.f. poster children for what europeans should do is ireland i.f.s.c. lobby group powerful in shaping policy max this is the international financial services center in dublin and they have but managed to implement a total of twenty one changes to the finance act to accommodate these people now the article here says a clearing house group was formed and they say a clearing house group is an unusual concept in the world of politics and public
life the government at its highest official level and all the main players in a particular sector form a body with the assistance of aim of expanding and developing the sector so max this is the government of ireland and the who's who of the finance and banking sector that includes j.p. morgan city state street r.b.s. barclays bank of america bank of ireland k p m g ernst and young p.w. c. lloyd coming out is code for slush fund number one and number two. let me explain what's going on here as as you know there is tremendous pressure now on wall street and the city of london to shut down these huge loopholes and regulatory laxity so what these folks are going to do obviously is move the game to dublin and to move the game to our own so that ireland will become the epicenter of the global bank
fraud market within twenty four months thus shifting the attention away from say of martin wheatley here the new regulator in london though saying we're cleaning up london you see we close these loopholes we're taking a stance against libel or manipulation meanwhile all that stuff is going to move ride over to dublin and this new group of course j.p. morgan one of the architects because that's what they do they they create improvised exploding financial devices and weapons of mass financial destruction the financial terrorists look up the dictionary there is german i'm specter and then to move it over to dublin. we started the show with the headline about. osborne convinces workers to swap their rights for shares. here in ireland these groups these bankers all of them by the way how many of these are currently being sued for various crimes t.p. morgan city bank barclays keep e.m.c. bank of america great well they're one of the things for example one of the twenty one things they got into the at the finance act was that essentially they're only
going to be taxed on seventy percent of their income over one hundred thousand euros right well this is a great thing when you have a fascist corporatist model like merican or the u.k. now arlen is there you could just make up laws as you go along change laws willy nilly apply the tax laws as are convenient the local population like the iroquois or the sioux are going to be pushed off their land they'll get in those coffin boats and sail off somewhere to try to get jobs but the economy as we know in our land is finished it's now the official global headquarters. for the club talker see irish people you might as well go down to the i f s e right now and line up for some of those food stamps from j.p. morgan absolutely must say zuma thank so much nothing on the kaiser report thinking about it don't go away stay right there in the second half of it talking to nick verbinski it directed a film that could just help take down the biggest divide and conquer all of them
all. by horse. by truck dirt. bike car for the road. as a carpenter. as a stove setter. a farmer. as an assistant. as a friend. as a relative delivering post and delivering. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you. are
welcome back to the. time now to go to new york and speak with nick. he's the director of confidence game when the guys report. thanks max appreciate you being you having me on here no problem so nick your film confidence game more or less the investigation that led to new york attorney general eric schneiderman recent lawsuit against j.p. morgan so take us back to march of two thousand and eight tells how bear stearns collapsed how j.p. morgan came to own it big was bear stearns in that residential mortgage securities business taken from their neck sure well back in march of two thousand and eight you know there was a fateful week that ended on st patrick's day where bear stearns had basically collapsed you know in the beginning of the week some tremors had begun where the stock was down ten percent on that monday march tenth and by the end of the week the the total price that j.p.
morgan was going to buy the company for was two dollars which was a fraction of what it had been worth you know the reality is though that the collapse of this firm had started long before that week. bear was basically number two in the subprime mortgage business it was forty five percent of their net revenues at the company and really had gotten so outsized that nobody really had a handle on what was going on in that business a bear had a reputation for being a very siloed management culture and by the time the bottom started falling out of the market you know it was way too late for them to do anything about it and at the end of that week in march of two thousand and eight tim geithner and hank paulson had engineered a shotgun marriage with j.p. morgan chase to buy the company along with a taxpayer guarantee for thirty billion dollars for for any losses that they might incur up to that amount after the purchase although the company was eventually sold for ten dollars a share not to you know
a year before it was at one hundred seventy dollars per share so a lot of employees lost their life savings as well as their jobs and we're talking about tens of thousands of people as well as investors really lost their shirts you know when the firm collapsed right nic i want to digress a little bit ask. more of a conceptual question your film and a couple of other films that got into the machinations of the fraud perpetrated on wall street the faulty accounting the manipulation and showing how this led to the collapse contrast that to a film like capitalism a love story by michael moore which seems to take on the entire notion of capitalism itself as the bad guy i'm wondering what your thoughts are what you think of his film does it fit in with what you're saying in your film are they two separate stories there they really are two separate stories you know. michael moore's film is more of a polemic you know i try to take more of a balanced approach to this project you know there's no doubt that wall street
enjoys and deserves as a very hefty amount of the blame for what's taken place but you know the reality is that there are a lot of americans who did things that they should've done and two of those people are in my film who basically admitted on camera that they had for forged or budged the numbers on their mortgage application with a sixty year old woman claiming she was a web designer at fourteen thousand dollars a month even though she really had no job so really what i think what the financial crisis amounted to in the big picture sense is just a chain reaction failure in personal professional fiduciary and moral responsibility to get down to the nitty gritty because i think that sort of film like yours really pays is that it talk about specifics and that there's a lot of fraud going on here talk about j.p. morgan what did they buy exactly well it went j.p. morgan bought the firm i don't really think they understood what they were buying you know they had looked at the firm for a couple of years and made some overtures about possibly buying it so they did know
a lot about the firm but you know during that week they were basically given probably a day and a half to evaluate a balance sheet that was four hundred billion dollars large so you know when they bought it i don't think they. we knew they knew there were some holes in there but i don't think they really understood the degree to which you know they were there right now what they're looking at is you know everything from just falsified securities pools with with bad you know due diligence and and documented bad due diligence you know we have whistleblowers coming out from clayton and some of these other due diligence houses saying that they told bear stearns that the loans that they were buying were really really bad and not informing investors or you know there are some more insidious things that have gone on as well which one of them is the mortgage double dipping scheme that terry buell broke in the atlantic and of course it's been widely reported in the mainstream press now where bear was basically they were putting bad loans back on these little hole in the wall
mortgage originators that they were sourcing them from and having having the originators buying back for maybe sixty seventy cents on the dollar and then pocketing the money money that was right that rightfully belong to the securities pool holders so you might say that bear had made a basically a business line out of fraud. and that's not even a says it's making its way through you know nobody doubts that the best turns if you forget the whole wall street business model is basically fried so what kind of tricks that j.p. morgan used to scare off the whistleblowers exactly. yeah well one of the things that's come out is one of the gentleman who appeared in on camera in my film. was was ready to be deposed by some counsel for in a large securities case against bear stearns once you greed to be deposed several days later he called the firm back and told him that he could no longer participate and that he was being represented by j.p.
morgan's lawyers all of a sudden so that of course raises the ears of conspiracy theorists everywhere i think for pretty good reason and especially since greenberg traurig is the law firm and they have a reputation of playing big time hardball so listen nic what happens from here regarding this civil suit filed by eric schneiderman is part of the new taskforce of how many lawsuits are there against j.p. morgan well right now i don't know exactly how many suits are going on against j.p. morgan but it's more than a handful and i think the a.g. suit is only going to encourage that you know in terms of the future of what the suit holds you know it's going to be interesting to see i think a lot of people are disappointed that it's a civil case rather than a criminal one and a lot of people think it was put out there for political purposes but you know at the end of the day they have to do their job on the task force and you know i mean unfortunately i just see a big settlement coming at some point so everybody can the bank can put it behind them quote unquote and of course the a.g. can you know say that he did something about it i think
a lot of people are still waiting for those criminal charges that that i definitely think are warranted in more than a few cases right so they just pay a fine and of course if they have to pay they get the feds to lend him a bunch of money and in a sense engage in quantitative easing and print up a bunch of money and then they turn around and impose austerity measures and then the disconnect seems to be pretty large between people's understanding of how they're being put on a centrally a debt slave farm common a crux of j.p. morgan is there a think that's going to change that and so on because seeing the facts of the. scream don't seem to make a dent in people's noodle they need some kind of emotional argument to get them riled up is that emotional argument going to come down the pike or is america the slave nation at foregone conclusion. i think it's a great question you know a month before i was finished with the film an interviewer asked me what was going to change wall street and i told him i thought the million man march was going to change it and then occupy wall street happened a week or two later so i thought that was it on of course that turned into
something very different so you know unfortunately the more i look at it the more i worry that it's going to take something along the lines of what's happening in greece today for people to really wake up and start looking at these things on an individual basis which is really what i think needs to happen at this point there's way too much malfeasance going on and and these settlements without admitting or you know denying wrongdoing they don't but wall street today sees fines as a cost of doing business and our regulatory structure and people like tim geithner who is inexplicably our treasury secretary are allowing that that stuff to go on and until we really start taking a look and demanding more from these people i don't think anything's going to change right nick forbid scheme you mentioned greece and of course people in greece are upset people in spain are now upset they have a common cause with people who are getting screwed in america in the u.k. across the world what about this idea of greece people of greece and people in the
u.s. and elsewhere coming together in some florida native effort to kick out the what i call the financial terrorism or are they just subjected to terrorism now and they have to live under the umbrella of being financially raped on a daily basis. i try to be a little bit more optimistic you know and say that no we're not just going to going to sit here and take it but i think the word you used which is coordinated and i think that's the problem right now is that a lot of these movements are very you know amorphous. and there are there they're just doing their own thing i think that's the problem is getting together to address these things i mean when you look at something like the library scandal that's going on right now the fact that that is just not still on fire in the mainstream press just astounds me it's probably the biggest financial scam that has ever gone on that's affected so many millions of people all over the world and yet we still there's nobody you know showing
a lot of outrage about it today so you know i think it's not a bad idea to coordinate it it's just a question of who's going to coordinate and of course that also get very political as those things tend to do but you know like i said i think it's a good idea to get together with those people and in a common cause because certainly we all have the same kind of beefs whether it'll happen or not you know i'd love to see it and i'll definitely participate if if it happens i know you mentioned the library scandal which of course has its sensor here in london with barclays and of course bank of england also implicated in it if you let interest rates for its agenda and for its constituents but the response here in london has been to get rid of the current regulator the f.s.a. bring in a new regulator bring in a new guy martin wheatley and it's like oh you know you're a filmmaker you'll appreciate this it's like the plot of men in black where they bring in the new allies and they all get up in front of the population and they go zap they're your memory of all the front is gone and the simple. what could i get
a new allies are like or is it a promise for a new film nic. it certainly is the premise for a new film and it's certainly something that i'm taking a look at i can tell you that much you know i think that one especially and as you pointed out the laxity of any kind of consequences for this you know if you wrote it up in a script for hollywood nobody would buy it i mean you just you wouldn't believe it so you know the strain the truth is certainly stranger than fiction in that respect but it does seem that you know there's been a collective kind of amnesia just after the scandal. i mean they got rid of diamond at barclays and then everybody said ok well we you know we we fired a c.e.o. we've done our job and you know meanwhile the rest of us who are paying car loans mortgages and credit cards tied to libel or have been manipulated for a number of years now and you know nobody seems to really care i'm not sure why that is maybe it's a lack of understanding maybe it's just learned helplessness at this point i certainly hope it's not the latter but but certainly more needs to be done and it's
definitely ripe for a documentary film treatment i can tell you that yeah well bob diamond got a huge payoff presumably he'll be getting a knighthood to go with it all right nick nick. thanks so much for being on the kaiser report rather time the film is confidence game thank you. thanks for having me all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest nick. he's got a film out called confidence game going to send me an email please do so at kaiser reported r.t. t.v. dot ru until next time x. guys are saying bye l. c good lumber. to build a new most sophisticated. doesn't sound anything.
market why not. find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines to cause a report on a. story. you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought. i'm tom harpur welcome to the big picture.